Principal GI Term II Offers New Lower Rates
From Principal:
Principal Guaranteed Issue Term II (GI Term II) has new premium rates, effective October 21
We’re excited to announce Principal Guaranteed Issue Term II (GI Term II) has new premium rates, effective October 21, 2024. The new rates are 12% lower, on average, with even greater decreases at many ages and slight increases at some younger ages. The updated product is available in all states except New York.
Transitional Guidelines
For purposes of these guidelines, GI Term II rates in effect prior to this reprice are referred to as "current rates" and the updated product is referred to as "new rates"
Key Dates for GI Term II
October 21, 2024
New rates are available to quote and sell in approved states.
Principal will accept plans for the product with current rates through November 25, 2024.
Plans in progress will be issued as the product applied for unless new rates are requested.
If new rates are desired, contact your Onboarding Specialist to assist you. A new applications isn't required
November 26, 2024
Plans received in the home office on or after this date will be issued with "new rates."
Backdating
Backdating is allowed. The requested backdate cannot precede the date of the applicable state approval of the new rates.
State approvals
Approved in all states except New York.
In addition to improved rates, the premium modal factor charge has been removed – meaning payments are equivalent at all frequencies (i.e., one annual payment is equal to 12 monthly, four quarterly, or two semi-annual payments).
Why GI Term II?
This innovative product can be ideal for funding business solutions including key person, business succession, and key employee benefits plans. Key features include:
Policies are issued on a GI-basis – eliminating the hassle and uncertainty of medical underwriting.
Preferred and Standard risk classes are available for groups.
Face amounts can be increased over time, without evidence of insurability, via the Salary Increase Rider or contractually through a job level change.
Policies can be converted to permanent insurance, without evidence of insurability, within the first five policy years or insured’s age 70, whichever occurs earlier.